Dear Sir,
I am 44 and working in private company withdrawing 2.6 lacs per month. I am doing SIP of 10000 in Axis Retirement Savings Fund - Aggressive Plan since Jan 2020, it has given only 8.6% returns. I also started putting 1100 in SIP in Axis NIFTY 50 Index Fund since Dec, 2021, giving returns of 9.8%. Apart from this rest of the money is in FDs as I am not good in finance management. As I am approaching Retirement, so want to be independent after it with having good monthly income. Can you please suggest which Mutual Funds or schemes can I start putting in, I am not having any loan, I can put 50-60K per month !?
Thanks in advance!
Regards.
Ans: You having two mutual funds and both being Axis is not a correct move. Seems like it has been suggested to you by somebody very much inclined to Axis AMC. As such, Axis Retirement Savings Fund - Aggressive Plan is not a good performer. I would suggest you to shift this part to HDFC Retirement Savings Equity Fund. Regarding the Nifty 50 fund, there’s hardly any difference between Nifty50 tracking funds since the base remains Nifty50 in all such funds.
If you’re planning solely for Retirement, then Retirement Mutual Funds are the best way to go about it. I would put it ahead of any other retirement saving avenue, provided you have selected it correctly with knowledge and research.
If you wish to invest in SIPs for any purpose (financial goals) other than Retirement, the portfolio that I would suggest is:-
1. Large Cap - 20% of SIP amount
2. Flexicap – 20%
3. Midcap – 20%
4. Aggressive Hybrid – 20%
5. Small Cap – 20% - SBI Small Cap Fund
In the above portfolio, the last, Small Cap category, will be very volatile and you will need to get used to it. If you’re not up to its gyrations, stick to first four with 25% allocation each.
